by Michael Covel
Daily Reckoning
Michael Covel: Yesterday, we discussed Long Term Capital Management’s collapse and how you helped negotiate the deal that may have prevented that crisis from turning into a disaster worse than 2008. Today, we’re going to explore your own personal journey to understanding how the markets really work.Your direct involvement with the Wall Street bailout in 1997 led you to the conclusion that the Fed has no idea what it’s doing, right? But you weren’t always that skeptical, were you, Jim?
Jim Rickards: No, not up to that point, Michael. I had no real reason to question the system. Back in 1997, I was a lawyer for LTCM. We had two Nobel Prize winners on our staff. We had a team of Ph.D.s from MIT, Harvard, Yale, Stanford, etc.We had some of the best brains in finance working for us, in other words.